Rupiah Weakens, Import Goods Prices Rise

Chairman of the Indonesian Textile Association (API) Ade Sudrajat said the depreciation of the rupiah against foreign currencies resulted in prices of imported goods rise. "In the end, because the price of imported goods is rising, dropped its competitiveness in the market," he said when contacted by Tempo, Saturday, August 24, 2013.

Ade said the rising prices of imported goods have reached 10-15 percent. According to him, the increase is already very high. "All the imported goods have gone up because we are very dependent on imports," he said.

As a result, he continues, demand for imported goods to be dropped due to skyrocketing prices of goods. "Moreover, added that market conditions were quiet after Eid," said Ade.

But, Ade added, weakening rupiah will benefit export-oriented industries. For example, he said, such as cocoa plantation and crude palm oil (CPO). "They are now in the wind, their smiles," said Ade.

Meanwhile, Ade said again, for domestic-oriented industries weakening of the rupiah is very detrimental. "The weak rupiah there are winners and there are no losers. Policy that the government is right because it leads to the fixing of export and domestic-oriented industries."
Rupiah Weakens, Import Goods Prices Rise